National average rates for second mortgage home equity loans and lines of credit are nearing 7%, their lowest point since late 2022. Over the years, your home has grown in value. Now you can access that equity at very favorable interest rates. HELOC and home equity loan rates: Friday, February 20, 2026 According to real estate analytics firm Curinos, the average HELOC rate is 7.23%. The national average rate on a home equity loan is 7.44%. Rates are based on applicants with a minimum credit score of 780 ...

Core Insights - HELOC and home equity loan rates are currently near one-year lows, with the average HELOC rate at 7.23% and home equity loan rate at 7.44% [2][11] - Homeowners with low primary mortgage rates and significant home equity may find it advantageous to obtain a HELOC or home equity loan now [12] Interest Rates Overview - The average HELOC rate is 7.23%, with a 52-week low of 7.19%, while the national average for home equity loans is 7.44%, with a low of 7.38% in early December 2025 [2] - Second mortgage rates, including HELOCs, are based on an index rate plus a margin, often tied to the prime rate, which is currently at 6.75% [4] Lender Flexibility and Shopping - Lenders have flexibility in pricing second mortgage products, making it essential for borrowers to shop around for the best rates based on credit score and debt levels [5] - Introductory rates for HELOCs may be significantly lower than market rates but typically convert to adjustable rates after an initial period [7][8] Loan Structure and Payment - Home equity loans generally have fixed rates, providing stability over the repayment period, while HELOCs may have variable rates that can change [6][9] - For a $50,000 HELOC at a 7.50% interest rate, the monthly payment during the draw period would be approximately $313, but payments may increase during the repayment period [13]

Core Insights - Interest rates for home equity lines of credit (HELOCs) and home equity loans are currently averaging in the low to mid 7% range, with the average HELOC rate at 7.25% and home equity loan rate at 7.56% [2][11] - Homeowners with low primary mortgage rates can access their home equity through second mortgages without refinancing their existing loans, making HELOCs and home equity loans attractive options [3][12] Interest Rates and Market Conditions - The Federal Reserve estimates that homeowners have approximately $34 trillion in equity locked in their homes, indicating a significant opportunity for homeowners to tap into this equity through HELOCs or home equity loans [4] - The index rate for second mortgage rates is often based on the prime rate, which is currently at 6.75%, plus a margin that can vary by lender [5] Loan Features and Options - HELOCs typically come with variable interest rates and may include introductory rates that last for a limited time, while home equity loans usually have fixed rates for the duration of the loan [6][7] - Lenders offer various terms and conditions for HELOCs and home equity loans, making it essential for borrowers to shop around for the best rates and terms based on their creditworthiness and financial situation [6][10] Borrowing and Repayment - For a $50,000 HELOC at a 7.50% interest rate, the monthly payment during the 10-year draw period would be approximately $313, but borrowers should be aware that rates are typically variable and can increase over time [13] - Homeowners can utilize the funds from HELOCs or home equity loans for various purposes, including home improvements and repairs, while maintaining their low-rate primary mortgage [12]

Core Insights - National average HELOC and home equity loan rates have decreased, with HELOC rates at 7.25% and home equity loan rates at 7.56% [2][11] - Homeowners have approximately $36 trillion in equity that remains inaccessible due to stagnant mortgage rates, making HELOCs and home equity loans viable options for accessing this value [3] HELOC and Home Equity Loan Rates - The average monthly HELOC rate has dropped by 19 basis points from the previous month, while home equity loan rates have decreased by three basis points [2] - Rates are based on applicants with a minimum credit score of 780 and a maximum combined loan-to-value ratio of less than 70% [2] Market Dynamics - The prime rate has recently fallen to 6.75%, affecting second mortgage rates, which are typically based on this index plus a margin [4] - Lenders have flexibility in pricing second mortgage products, and rates can vary significantly based on individual credit scores and debt levels [5] Loan Features - HELOCs often come with introductory rates that may last for a limited time before becoming adjustable, while home equity loans typically have fixed rates [6][9] - The best HELOC lenders offer low fees and generous credit lines, allowing homeowners to draw from their equity as needed [7] Current Offers - FourLeaf Credit Union is currently offering a HELOC APR of 5.99% for the first 12 months on lines up to $500,000, which will convert to a variable rate thereafter [8] Considerations for Homeowners - For homeowners with low primary mortgage rates and significant equity, now may be an optimal time to secure a HELOC or home equity loan for purposes such as home improvements [12] - Monthly payments on a $50,000 HELOC at a 7.50% interest rate would be approximately $313 during the draw period, but rates are variable and can increase during the repayment period [13]